Quote:
Originally Posted by wifi
30% debt to income ratio. Local bank. I haven't gotten the appraisal report back yet, perhaps she got up on the wrong side of the bed that day. I've always thought the value of a house or land is what someone is willing to pay for it otherwise, its really subjective.
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What you are willing to pay and the appraised market value are two entirely different numbers.
The appraisal value is based on the actual sale price of "like properties" within a certain distance of the subject property. Price weighting is done to even the score between comparable properties. So if one has more SQFT than another the price difference is calculated as such as a line item on each comp listed as ether +/- X number of dollars. Banks could care less what you want to pay, they want to know what stuff is actually selling for. Trouble with this is if there is to much skew between "like properties" that raises all kinds of red flags and yes can kill a loan as quickly as bad credit.